Mr. Zeeshan Syed reports

AVALON CLOSES $2,750,000 FIRST DRAWDOWN OF $15,000,000 CONVERTIBLE SECURITY FUNDING AGREEMENT

Avalon Advanced Materials Inc. has closed the $2.75-million first drawdown of its up-to-$15-million convertible security financing agreement with Lind Global Fund II LP, an entity managed by The Lind Partners, a New York-based institutional fund manager. The details of the financing agreement are contained in the company's news release dated March 18, 2024.

With the first drawdown completed, the company has initiated steps to commence a preliminary economic assessment (PEA) for its lithium hydroxide conversion facility in Thunder Bay, Ont. The project will be owned and operated by Avalon's wholly owned subsidiary, Lake Superior Lithium Inc. The PEA will consider feed sourcing of high-grade lithium concentrates from various sources, and will feature the world-leading and environmentally friendly Metso lithium conversion technology, currently being deployed within similar projects in the United States, the United Kingdom and Finland. The PEA will include lithium concentrate and reagent receiving/storage, processing and site infrastructure, as well as shipping/handling of product and byproduct off site.

About The Lind Partners

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the U.S., Canada, Australia and the U.K. Lind's multistrategy funds make direct investments ranging from $1-million (U.S.) to $30-million (U.S.), invest in syndicated equity placements and selectively buy on market. Having completed more than 200 direct investments totalling over $2-billion (U.S.) in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011.

About Avalon Advanced Materials Inc.

Avalon is a Canadian advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. The company, through its joint venture with SCR-Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, Ont., while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects. Avalon is also working to develop its Nechalacho rare earths and zirconium project, located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defence industries among other sectors.

In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontario's first mid-stream lithium hydroxide processing facility in Thunder Bay, Ont., a vital link bridging the lithium resources of the north with the downstream EV (electric vehicle) battery manufacturing base in the south.

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